On December 30, 2025, the United States government approved annual export licenses for two of South Korea’s semiconductor giants, Samsung Electronics and SK Hynix, allowing them to ship American-made chip manufacturing equipment to their China-based factories throughout 2026. This decision, reported by eeNews Europe and Reuters, marks a significant shift in the ongoing saga of US-China technology trade, as it replaces the broad waivers that had previously enabled these firms to operate with far less oversight.
The move arrives at a pivotal moment for the global semiconductor industry, which has been roiled by supply chain disruptions, surging demand from artificial intelligence (AI) data centers, and escalating geopolitical tensions. For Samsung and SK Hynix—ranked as the world’s top and second-largest memory chipmakers respectively—China remains a critical manufacturing hub, especially for mature-node memory products like DRAM and NAND. These chips, often overlooked by consumers, are the backbone of modern data infrastructure, powering everything from cloud storage to AI workloads. Over the past year, soaring demand from AI data centers has tightened supply and driven prices for these memory products ever higher.
But the new US licensing regime is no carte blanche. Instead, it introduces a system of annual reviews, replacing the so-called “validated end-user” status that had allowed Samsung, SK Hynix, and Taiwan Semiconductor Manufacturing Company (TSMC) to receive US chipmaking tools without navigating a web of individual licenses. That status, which had been a lifeline for foreign chipmakers operating in China, expires on December 31, 2025. Starting in 2026, any shipment of American chipmaking equipment into China will require explicit approval from US authorities every year—a process that injects fresh uncertainty into the long-term planning of these tech titans.
According to eeNews Europe, sources familiar with the decision confirmed that this annual review system is designed to provide “limited operational continuity” for Samsung and SK Hynix, whose investments in Chinese manufacturing are both substantial and strategically important. The US Department of Commerce, which oversees export controls, did not comment outside business hours, and neither Samsung nor SK Hynix offered statements on the matter. TSMC, which had also benefited from the previous exemptions, did not immediately respond to requests for comment.
The story behind these new rules stretches back to earlier in 2025, when Washington revoked longstanding license exemptions for certain foreign chipmakers. These waivers, which had been granted under both the Obama and Biden administrations, were seen by some in Washington as too permissive, potentially allowing advanced US technology to seep into China’s manufacturing ecosystem. The Trump administration, in particular, has been vocal about its desire to tighten export controls and limit China’s access to sensitive American innovations. As Reuters notes, “Keen to limit China’s access to advanced American technology, U.S. President Donald Trump’s administration has been re-examining export controls that it thought were too relaxed under the Biden administration.”
What does this mean for the companies on the ground? For Samsung and SK Hynix, both of which declined to comment for this story, the new rules mean walking a tightrope. Their Chinese fabs produce vast quantities of memory chips—products that are not only crucial for global tech supply chains but also serve as a significant revenue stream for the companies themselves. Losing access to the latest American manufacturing equipment could erode their competitiveness, especially as rivals in other countries race to keep up with the relentless pace of innovation in the chip sector.
Still, the annual licensing system does not represent a rollback of US export controls. Rather, it signals Washington’s willingness to tolerate the continued operation of foreign-owned fabs in China, albeit under much closer scrutiny. As eeNews Europe reports, the current administration “has argued that earlier export rules were overly permissive and is re-examining how advanced US technology flows into Chinese manufacturing ecosystems.” This delicate balancing act—between protecting national security interests and supporting allied companies—has become a defining feature of US semiconductor policy.
For their part, South Korean officials and industry observers are watching the situation with a mix of relief and apprehension. The annual approval provides a temporary reprieve, ensuring that Samsung and SK Hynix can continue to supply their Chinese operations with the tools they need—at least for now. But the shift to year-by-year reviews adds a layer of unpredictability that could complicate investment decisions and long-term planning. “The approval is a temporary relief for the South Korean firms,” a source told Reuters, underscoring the precariousness of the new arrangement.
Meanwhile, the broader context cannot be ignored. The semiconductor industry is at the heart of a global race for technological supremacy, with the US, China, and other major economies vying for control over the supply chains that underpin everything from smartphones to supercomputers. The US government’s decision to tighten export controls reflects growing concerns about China’s ambitions in advanced technology—and the fear that American know-how could be used to bolster rival industries or even military capabilities.
Yet, as the saga unfolds, one thing is clear: China remains an indispensable part of the global chipmaking landscape. For Samsung and SK Hynix, the country is not just a manufacturing base but a vital link in a complex web of supply and demand. As AI, cloud computing, and digital transformation continue to accelerate, the need for high-quality memory chips will only grow, making the stakes of US export policy higher than ever.
As for the future, much depends on how the annual review process plays out—and whether Washington’s approach to export controls will shift again under changing political winds. For now, though, the world’s leading memory chipmakers have secured another year of access to the American tools they need, even as the ground beneath them continues to shift.
The decision, while offering a measure of continuity for Samsung and SK Hynix, leaves the industry bracing for further change. In the high-stakes world of semiconductors, certainty is a rare commodity—and the only guarantee is that the next chapter in the US-China tech rivalry is already being written.
